MT Desk: The Saudi Fund for Development has signed a $10 million contribution agreement with the Asian Infrastructure Investment Bank to bolster the financial institution’s newly established programs, as reported by the Saudi Press Agency.

This initiative is designed to strengthen infrastructure development in low-income member countries. It aims to aid AIIB in bridging the financing gap in infrastructure and other productive sectors within these nations, according to the SPA. 

The agreement underscores collaborative efforts with international institutions to fund projects and development programs in these less developed nations, with the goal of achieving economic prosperity and social growth.

The deal was signed by the fund’s CEO Sultan Abdulrahman Al-Marshad and Danny Alexander, the deputy vice president for policies and strategies at AIIB. The signing ceremony took place on the sidelines of the annual meeting of the AIIB’s Board of Governors in Sharm El Sheikh, Egypt.

The event serves as an opportunity to assess AIIB’s performance and gather insights from its shareholders regarding strategic direction and initiatives.

Last month, the fund laid the foundation stone for the MangokyBridge in Madagascar, an island country on the southeastern coast of Africa. 

It contributed $20 million as a soft loan to the project, which connects the Atsimo-Andrefana and Menabe regions — home to Madagascar’s most vital agricultural and tourism assets. 

The bridge is expected to significantly reduce travel time between these regions, facilitating quicker transportation of local farmers’ products to the market.

The fund has extended loans totaling $69 million to finance six development projects in Madagascar.

Since its establishment in 1974, the fund has undertaken over 700 development projects and programs in more than 90 developing countries worldwide, with a total value exceeding $18.7 billion. 

These initiatives have played a pivotal role in contributing to sustainable international development.

In January, the fund signed a deal with Pakistan’s Ministry of Economic Affairs to finance oil derivatives amounting to $1 billion. 

Saudi Arabia’s support to Pakistan came at a critical time when the Asian nation was grappling with a severe economic crisis, marked by dwindling forex reserves and a rapidly depreciating national currency.